Hanna town council approved writing off about $3,000 in uncollectable bills, something many municipalities do at this time of year as they prepare for audit and budgeting. The decision was made at the Dec. 10 regular meeting of council.
Councillors read a staff memo requesting a resolution allowing Chief Administrative Officer (CAO) Michael Norburn to declare 12 utility accounts in the amount of $2,134.01 as uncollectable and remove the funds from the utility receivable account, plus a declaration that two accounts receivable accounts in the amount of $400 be labelled uncollectable and remove the funds from the trade receivable account.
It was noted in the staff memo the utility accounts, which were identified only by number and not personal names, ranged in size from the lowest of $32.13 to the largest of $479.94.
“Administration has followed procedures to obtain the funds but determined that they are uncollectable due to bankruptcy, the sale of properties or relocation to another community,” stated the staff memo, which noted some other roadblocks to collecting the amounts included organizations going out of business or billing discrepancies.
During discussion Coun. Sandra Beaudoin asked why the amounts owing couldn’t be collected. Staff responded that most of the unpaid amounts are connected to people who sell their property and move away from Hanna and the amount they owe is usually the final bill they got from the town; staff noted unpaid account holders appear to ignore any requests to clear up the debts.
It was noted some of the debts were unpaid utility bills, dog fines or other fees.
Coun. Beaudoin asked if there was any way these amounts could be registered against the property before those residents moved away.
Staff answered that it could be difficult to get a notice or letter to someone before they sell their house and leave town.
Coun. Sandra Murphy observed that one option for trying to get the outstanding bills paid is hiring a collection agency; however, she noted that collection agency fees may add up to more than the account holder owes to the town.
Staff agreed, adding that the Town of Hanna hasn’t used a collection agency in years. The collection agency is paid a portion of the collected amount, they noted.
Councillors unanimously passed a resolution granting the CAO the requested authority.
Stu Salkeld
Local Journalism Initiative reporter
ECA Review
